The Australian Dollar is often looked at as the “Risk On/Risk Off” currency. Back in 2008 the AU$ formed a bearish rising wedge which suggests a two-thirds chance of lower prices.  Once the breakdown took place risk assets around the world tanked (stocks & commodities)!

I shared with Premium Members last Thursday that the AU$ was breaking support as EEM was breaking down from its pennant pattern.  Premium Members established a Short Emerging markets position in EEV last Thursday.

The last time AU$ broke support investors had few place to hide (not stocks or commodities)…..Will it be different this time?


How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past